A proposal is being investigated regarding the construction of a new power plant.

• A one-off land costs $510000
• A one-off building costs $970000,
• A one-off equipment costs $650000,
• The annual operating cost of the power plant is estimated to be $94000 starting at the end of year 1 that last forever,
• One major overhaul is required every year, starting at the end of year 1 at a cost of $99000 that last forever.

To fund the initial land, building and equipment cost, 48.6% of the initial cost will be acquired from selling shares, with share holders expecting 4.2% of annual return, and the remaining will be acquired via financing with annual interest rate of 5.9%. You may assume a corporate tax rate of 29%.

The estimated weighted average cost of capital (WACC) is ... p.a.. Leave your answer as a positive value with 2 decimal places.

Using another estimate of WACC of 4.3% p.a., the capitalised cost of this project is

millions. Leave your answer as a positive value with 2 decimal points.